EA net bookings hit $1.82B, up 4% in September quarter as soccer game takes off

Electronic Arts reported financials for its fiscal second quarter ended September 30 with results driven by its newly renamed EA Sports FC soccer game today.

Net bookings for the quarter were $1.820 billion, up 4% from a year ago. Live services and other net bookings for Q2 were $1.129 billion, up 1% year-over-year. On a trailing twelve-month basis, live services were 73% of the gaming giant’s business. The company’s stock is up 5% to $130.25 a share in after-hours trading.

EA Sports FC 24, within the first four weeks of global launch, had over 14.5 million active accounts.

“We delivered a strong Q2 and successfully launched EA Sports FC, transforming one of the largest franchises in the world into a powerful, interactive platform for the future of football fandom,” said Andrew Wilson, CEO of EA, in a statement. “Looking ahead, our incredible teams will continue to innovate and expand across our world-class IP, building experiences that entertain our massive online communities, celebrate fandom, and increase connection for our growing global player base.”

EA said that the EA Sports Madden NFL franchise outperformed Q2 expectations, delivering net bookings growth of 6% year-over-year.

“EA Sports strength, driven by new releases and ongoing live services, delivered Q2 results ahead of expectations,” said Stuart Canfield, CFO of EA, in a statement. “We remain focused on delivering for our growing player communities and building upon the momentum across our portfolio, while prioritizing investments that execute against our largest opportunities to drive long term growth.”

Michael Pachter, an analyst at Wedbush, said in an email to GamesBeat that EA beat expectations for revenue by $20 million and on earnings per share by 16 cents (both measured against the high end of their guidance range). 

“They maintained revenue guidance, but increased EPS guidance by 25 cents a share, so the clear takeaway is that they are saving more from not paying FIFA a license fee than they had to spend to drive awareness of the re-branded EA Sports FC game,” Pachter said.

In an analyst call, Canfield said Apex Legends results were below a year ago, but came in above expectations.

For the trailing 12 months, EA said its net bookings were $7.686 billion, with $2.103 billion coming from full games and $5.583 billion coming from live services games.

For the full fiscal year ending March 31, 2024, EA’s net revenue is expected to be $7.3 billion to $7.7 billion. Net income is expected to be $1.12 billion to $1.27 billion. Diluted earnings per share is expected to be approximately $4.10 to $4.66. Operating cash flow is expected to be approximately $1.95 billion to $2.1 billion.

For the third fiscal quarter ended December 31, EA expects net revenue is expected to be approximately $1.825 billion to $2.025 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately $425 million. Net income is expected to be approximately $203 million to $275 million. And diluted earnings per share is expected to be approximately 75 cents to $1.01. Net bookings are expected to be approximately $2.250 billion to $2.450 billion.

Earlier this month, EA revealed a first-look at EA Sports FC Tactical – a new way to play soccer on mobile devices. EA Sports FC Tactical features interactive simulation with strategic, turn-based gameplay and access to more than 5,000 authentic players across more than 10 top leagues, including the Premier League, LaLiga, EA Sports, Bundesliga, Ligue 1, and Serie A.

EA said it expects to be carbon neutral by 2027. Its inclusive design has been used in Apex Legends, The Sims 4 and Dead Space. And it continues to increase company-wide representation of women and underrepresented talent.

EA said that console games were $1.152 billion out of total net bookings in FYQ2, up 12%. PC and other platforms were $389 million, down 10%. Mobile was $279 million, down 6%.

Originally appeared on: TheSpuzz